I think your a smart guy and answers my question well. Would you take the time to read my essay that I used for my Stanford application and tell me what you think? I proposed a solution to ur income inequality graph through incentives.

Here is part of the essay:

I learned that studies indicate that our current capitalistic society will eventually lead to dramatic income inequality, and eventually an oligarchy. Economist Thomas Picketty best describes what drives income inequality in the short hand, “R” or capital gains growth is greater than “G” or the growth of the lower and middle class labor market”(R>G). Fixing income inequality is one of the most complex issues our country faces, and I want to take this challenge head on and provide a solution. I believe it can be solved through a series of policy changes that utilize incentives. I realize that the tax plan I am about to propose is an oversimplification, but the basic theory is sound and I think it is an important first step. The way to fix income inequality is to raise work force wages, while not forcing absolute high taxes the rich. A Capital gains tax that incentives top managers to pay their work force a livable wage will achieve this balance. The way to implement this is to offer top managers a choice of either paying their work force a determined higher wage, or face higher capital gains taxes that would be a relative percentage of the gap between the R and the G that year. Managers can choose to close the inequality gap by either boosting their own labor force’s wages or by giving up some of their passive income growth. The key to reducing income inequality is incentivizing the wealthy to give to poor within every business hierarchy structure.